Abitibi Royalties "Royalty Search" Update

VAL-D'OR, QUÉBEC--(Marketwired - Aug. 31, 2015) -Abitibi Royalties Inc. (TSX VENTURE:RZZ) ("Abitibi Royalties" or the "Company") is pleased to announce that it has entered into a binding Letter of Intent with Frontline Gold Corporation ("Frontline") to acquire a 2% net smelter royalty ("NSR") on its Whitehorse Island Property that is situated between the Goldcorp / Premier Gold Rahill-Bonanza Gold Property to the northeast and Premier Gold's Hasaga Gold Property to the southwest. The property is also located approximately 5.5 km southwest of Goldcorp's Red Lake Mine (Fig. 1). Abitibi Royalties is also entitled to 15% of any cash proceeds received by Frontline should the project be sold or joint ventured. This is the sixth royalty purchased near an existing mine since the "Royalty Search" was launched on June 9th.

In exchange for a 2% NSR on the 35.55 hectare Whitehorse Island Property and 15% of any cash proceeds should the property be sold or joint ventured, Abitibi Royalties has agreed to pay Frontline Cdn$10,000. The cash consideration will be paid by Abitibi Royalties from its working capital. Frontline is seeking a joint venture partner in order to explore the Whitehorse Island Property. To contact Frontline, please call Walter Henry at 416.414.5825.

Since launching the Royalty Search on June 9th, six royatlies near existing mining operations have been acquired, which include royalties surrounding or near Eldorado's Efemcukuru mine in Turkey, Alamos Gold's Young-Davidson mine in Ontario, Agnico Eagle and Yamana's Canadian Malartic mine in Quebec, Metanor Resources Bachelor mine in Quebec, Hudbay's 777 mine in Manitoba and now Goldcorp's Red Lake mine in Ontario. A list of these royalties can be found here.

The Royalty Search (www.abitibiroyalties.com) is an easy to use website that allows mining companies and prospectors a quick way of accessing capital in this difficult commodities market.

In return for paying these fees, Abitibi Royalties would be granted a NSR on the property. To date, approximately 50 properties have been submitted through the website and 6 agreements have been finalized.

Update on Cash Flows

On August 27th, the Company was informed of its Q2 2015 royalty income from the Gouldie Zone, where the Company has a 2% NSR, at the Canadian Malartic mine in Quebec. Royalty income totaled approximately Cdn$48,500 in Q2. On August 5th, the Company previously announced that Canadian Malartic GP (50% owned by Agnico Eagle and Yamana Gold) reported that mining at the Gouldie zone had stopped at the end of June 2015 and that remaining reserves would be converted into resources when estimates are recalculated at year-end. Any additional income from stockpiles at the Canadian Malartic mine that is subject to the Company's 2% NSR will be reported in future periods. In addition, investment income during July and August totaled approximately Cdn$97,500. As of August 31st, the Company has received approximately Cdn$531,500 in royalty payments and investment income in 2015.

About Abitibi Royalties Inc.

Abitibi Royalties holds a 3% NSR on the Odyssey North discovery, Jeffrey Zone and the eastern portion of the Barnat Extension and a 2% NSR on portions of the Gouldie and Charlie zones all at the Canadian Malartic mine near Val-d'Or, Québec. In addition, the Company is building a portfolio of royalties on early stage properties near producing mines and it holds 100% title to the Luc Bourdon and Bourdon West Prospects in the Ring of Fire, Ontario. The Company owns 3,549,695 shares of Yamana Gold, 444,197 shares of Agnico Eagle, approximately $1.8 million in cash and no long-term debt.

This news release contains certain statements that may be deemed "forward-looking statements". Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or realities may differ materially from those in forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.